Minister not ruling anything in or out on Iraq

Australian soldiers could join a limited US-led ground force to help rescue tens of thousands of stranded Iraqi refugees who have fled an onslaught by fighters from the brutal Islamic State.

Fairfax Media has been told that the federal government is considering options to support a strictly humanitarian mission that may include international ground forces to help escort members of the minority Yazidi sect out of danger.

Australia has not yet been asked by Washington for any such assistance, but it is understood that if the Obama administration decides ground forces are needed, Australia stands ready to contribute.

One option is for Australian Defence Force personnel who were sent to Europe on stand-by for the MH17 search to go to Al Minhad Air Base in the United Arab Emirates, ready for deployment to Iraq.

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Prime Minister Tony Abbott, after meeting with senior British officials in London, pointedly refused to rule out military action on Wednesday morning, Australian time. ''We certainly don't rule that [military action] out,'' he said. ''We are talking to our partners … about what we can usefully do to help.''

Western leaders have been at pains to hose down any suggestion they might be drawn back into a lengthy and bloody conflict in Iraq. US Secretary of State John Kerry said in Sydney on Tuesday there would be ''no reintroduction of American combat forces''.

But Mr Abbott repeatedly drew a distinction between full-scale military involvement in Iraq and a limited humanitarian mission.

''There is a world of difference between getting involved to prevent genocide and the kind of involvement that we've seen in recent years by Western countries in the Middle East … and no one should conflate the two,'' he said.

Somewhere between 20,000 and 40,000 members of the minority Yazidi community are believed to remain stuck in a barren mountain area in northern Iraq, hiding from Islamic State fighters who vow to massacre them unless they convert to Sunni Islam.

The New York Times and Wall Street Journal both reported on Wednesday that the Pentagon was preparing options for Mr Obama that included ground forces.

The Times quoted senior US administration officials saying they believed some type of ground force would be needed to secure the safe passage of the Yazidis and that any such mission would likely be an international effort. The paper quoted an unnamed military official saying that air drops of food and medical supplies were ''not enough'' and at some point, ''somebody is going to have to go in, whether it's the Kurdish military or the Iraqi military or international troops''.

The British government announced it was sending four Chinook transport helicopters to the region, which could position forces to help rescue the refugees.

Defence Minister David Johnston said Australia would soon carry out its first air drop of aid including blankets and hygiene kits from two RAAF C-130 transport planes amid fears the refugees are suffering exposure to the harsh elements as well as thirst and hunger.